We are asking you to reach out to your Members of Congress and encourage them to sign onto a bill regarding the misclassification of independent contractors bill as a cosponsor. The simple message is that the Congress of the United States should enact policy that would strengthen enforcement by the Department of Labor and pare back the tax loopholes that encourage misclassification and rob the federal government of billions of dollars of much-needed revenue, while exploiting workers and denying them important rights and benefits.

Dear [ Decision Maker ] ,

Legislation regarding the misclassification of independent contractors will be introduced in the US House of Representatives by Congressmen Jim McDermott (D-WA), Richard Neal (D-MA) and John Tierney (D-MA).

Federal law grants workers many important workplace benefits and protections, as long as the worker is an employee of the employer. Those who are self-employed or provide services to an employer as an independent contractor have few rights.

Fifteen percent or more misclassify their employees as independent contractors to save as much as 30 percent on labor costs. Additionally, misclassification puts workers at an extreme disadvantage when they seek to demonstrate their entitlement to statutory benefits and protections.

We believe the following elements are an essential part of employer misclassification reform.

Close the Tax Loophole: The current IRS safe harbor loophole allows employers to misclassify workers with impunity and allows denials of benefits to workers to continue unremedied. This loophole should be closed, and employers that misclassify their workers should have to correct their error. Increase Transparency and Enforcement: Measures to significantly improve transparency and enforcement are desperately needed, including: strengthening recordkeeping requirements, such as requiring companies to file 1099s with the IRS on payments made to independent contractors that are incorporated; improving complaint procedures that protect workers who identify lawbreakers and encourage both public and private enforcement actions; and implementing stronger penalties for willful misclassification.

Sincerely,

Campaign Launched:
August 03, 2009